Patiala House Court Grants Conditional Stay On Bikaner House Attachment

The Patiala House Court on Friday granted a conditional stay on the attachment of Bikaner House in New Delhi, which is owned by Nagar Palika Nokha, Rajasthan.

The stay is contingent upon the deposit of a specified amount within one week. District Judge (Commercial) Vidya Prakash issued the interim relief, with the condition that the Fixed Deposit Receipt be submitted to the court by the specified deadline.

The dispute centers around an arbitration award in favor of M/S Enviro Infra Engineers Pvt. Ltd., a company that provided services to Nagar Palika Nokha back in 2011. The court had previously ordered the attachment of Bikaner House after Nagar Palika failed to fulfill the arbitral award passed in 2020.

Advocate Sahil Garg, representing the decree-holder company, informed the court that the conditional stay would remain in effect until the FDR is deposited.

He further stated, “If the other party fails to deposit the FD, we will seek to auction the attached property. The outstanding amount is approximately one crore at present.”

The case’s next hearing is set for January 7, 2025.

Case Background

The legal conflict revolves around the failure of Nagar Palika Nokha to comply with the arbitral award, which directed them to pay Rs. 50,31,512 to M/S Enviro Infra Engineers Pvt. Ltd. for services rendered in 2011. After multiple opportunities to comply with court directions, including submitting an affidavit of assets, Nagar Palika did not fulfill the award, prompting the court to issue a warrant for the attachment of Bikaner House on November 7.

Earlier, on September 18, the court had issued an order preventing Nagar Palika from transferring or encumbering the Bikaner House property in any form, effectively freezing its disposal until further court orders.

The court emphasized that the property could not be sold, gifted, or transferred without express permission, marking a significant legal step in the enforcement of the arbitral award.

In response to the award, Nagar Palika filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the arbitral ruling.

However, the petition was dismissed by the court on January 24, 2024, and the enforcement proceedings continued.

This latest ruling by the Patiala House Court provides a temporary reprieve for Nagar Palika Nokha, but the matter remains unresolved, with the potential for further legal developments depending on whether the deposit conditions are met within the allotted time.

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